10 common types of invoices

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Running a business is intrinsically linked to issuing invoices, and these come in all shapes and sizes. Some are familiar invoices, while others we have to issue from time to time. However, as professionals, we need to know how to choose and issue all types. This article will outline the basic concepts needed to help you quickly distinguish and choose the right type of invoices.

Types of invoices – index
Proforma invoice
Advance payment invoice
Sales invoice
Recurring invoice
Partial invoice
Final invoice
Summary invoice
Credit note
Debit note
VAT invoice
10 common types of invoices
Proforma invoice
A proforma invoice, or as some call it, a preliminary invoice, is a belize whatsapp number database designed to present your offer to your customers. If they accept your terms and conditions, they will pay the invoice and you can deliver the goods or services detailed.

If customers do not accept your terms and conditions, they do not have to pay. This is because issuing proforma invoices does not obligate customers to pay or create any tax liabilities.

What conditions imply such an obligation then? Only when the customer pays the proforma invoice. In this case, you must issue a regular invoice and pay all sales-related taxes. What you receive is the money even before the order is processed. And what about your customers? They also benefit, because the proforma invoice allows the customer to easily and freely compare offers from several companies in order to choose the right one.

Advance payment invoice
At first glance, an advance invoice looks similar to a proforma invoice. But look closer and you’ll see that they vary. An advance invoice involves an obligation to pay, while a proforma invoice is merely a proposal to enter into a sales contract.

When is an advance invoice a good choice? Definitely if you need to commit significant financial resources, from your point of view, to complete the order. An advance invoice allows you to receive part of the payment from the customer even before selling the goods or services. This will have a positive effect on your liquidity, especially when processing large orders. You can set the amount as a specific percentage of the total order. This gives you more certainty that your customers will not cancel the contract because they would lose the money already paid.

Sales invoice
This is a common invoice, but it cannot be left out of this list. In commercial transactions, such an invoice occurs most often. This is the document that everyone thinks of when they hear the term invoice. Like other types of invoices, it contains all 12 elements that any invoice requires . It documents a commercial event that occurred between the seller and the buyer. Such an invoice can cover both the sale of goods and the provision of services.

Recurring invoice
This type of invoice is very common for service provision. It is issued at a predetermined period. Most often, it is monthly, but you can also find weekly, quarterly or annual invoices. These usually appear in the case of multiple subscriptions.

The rate for each month is set in advance, so you know immediately how much to pay. This feature of recurring invoices makes it very easy to automate the issuance of this type of invoice. Using an invoicing app , the process of issuing recurring invoices can become really simple. All you need to do is enter a few necessary data and the next invoices will be generated automatically. What data is needed for this? Usually, the following information is sufficient:

customer data,
information about what the invoice is,
the invoice amount,
when the next invoice is due to be issued,
payment date.
For recurring invoices, each subsequent invoice is very similar to the first invoice that was issued. They will differ in number, date of issue and sale, and due date. If you know your customers’ email addresses, you can also have your invoicing software send these invoices automatically, which will certainly save you a lot of time.

Partial invoice
Partial invoices are popular for large projects. In this case, the agreed work is divided into stages. When a specific stage is completed, you issue a partial invoice. This method of invoicing applies to both the supply of goods and the provision of services. It is best to establish the payment schedule in advance, at the stage of signing the contract. This way, you will inform your customers in advance, without surprising them with the invoice you issue.